Cognex Corporation. (NASDAQ:CGNX) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET

Company Participants

Nathan McCurren - Head of Investor Relations
Robert Willett - President, Chief Executive Officer
Dennis Fehr - Chief Financial Officer

Conference Call Participants

Andrew Buscaglia - BNP Paribas
Tommy Moll - Stephens Inc.
Piyush Avasthy - Citi.
Jacob Levinson - Melius Research.
James Ricchiuti - Needham and company
Guy Hardwick - Freedom Capital Markets
Keith Housum - North COAST Research
Damian Karas - UBS
Ken Newman - Keyband Capital markets

Operator

Greetings. Welcome to the Cognex Second Quarter 2024 Earnings Conference Call. [Operator Instructions] I will now turn the conference over to your host, Nathan McCurren, Head of Investor Relations. You may begin.

Nathan McCurren

Thank you, operator. Good morning, everyone, and thank you for joining us. Our press release was published yesterday after market closed and our quarterly report on Form 10-Q for Q2 2024 was filed this morning. The press release, earnings presentation and 10-Q are available on the Investor Relations section of our website. Both our published materials and the call today will reference non-GAAP measures. You can find a reconciliation of certain items from GAAP to non-GAAP in our press release and earnings presentation.

Any forward-looking statements we made in the press release, the accompanying presentation posted to our website or any that we may make during this call are based upon information that we believe to be true as of today. Our actual results may differ from our projections due to the risks and uncertainties that are described in our SEC filings, including our most recent Form 10-K and Form 10-Q.

On today's call, Rob Willett, Cognex's President and CEO, will discuss end market trends and provide an update on our strategic initiatives. Dennis Feh, Cognex' CFO, will discuss our second quarter financial results, and we'll conclude with our outlook.

With that, I'll turn the call over to Rob.

Robert Willett

Thanks, Nathan. Hello, everyone, and thank you for joining us. In the second quarter, we delivered revenue and gross margin in line with our guidance. Revenue increased sequentially driven by typical consumer electronics seasonality.

Excluding Moritex, revenue was down year-on-year in total and across most of our factory automation end markets. This reflects a business environment that remains challenging, but stable. Operating expenses were favorable to expectations and contributed to a sequential adjusted EBITDA margin increase of 8 percentage points. This increase demonstrates the leverage our business delivers on incremental revenue and our continued focus on cost management.